Dangote Group, Africa's largest industrial conglomerate, is significantly expanding its operations in Ethiopia, signaling strong confidence in the country's improving investment climate. The expansion, announced jointly with Ethiopian Investment Holdings (EIH), includes doubling cement production capacity and venturing into the sugar industry.
Aliko Dangote, Chairman and CEO of Dangote Group, cited recent positive discussions with Ethiopian Prime Minister Abiy Ahmed and the country's visible development as key factors driving this decision. He highlighted the successful repatriation of all loans and dividends from the existing 2.5 million-ton cement plant in Mugher.
The expansion plan includes:
Doubling cement production: A second production line at the Mugher plant will increase capacity to 5 million tons per annum (MTPA).
New grinding unit: A 3 MTPA greenfield grinding unit will be built near Addis Ababa.
Sugar industry investment: Dangote Group will leverage its Nigerian experience to expand operations at Ethiopia's Omo Kuraz sugar company.
Potential urea plant: Future plans include a urea production plant, contingent on the development of Ethiopia's natural gas reserves.
Dr. Brook Taye, CEO of EIH, welcomed the investment, emphasizing Ethiopia's commitment to private sector growth and industrialization. He stated that the expansion demonstrates confidence in Ethiopia's business environment and will significantly contribute to economic growth and job creation.
Dangote emphasized the importance of African businesses driving continental development, stating, "Africa will be developed by Africans." This expansion solidifies Dangote Group's position as Africa's leading cement producer, increasing its total capacity to 55 MTPA.
The investments in Ethiopia's sugar and fertilizer sectors are expected to create jobs and boost agricultural productivity. The move further strengthens Ethiopia's position as a leading investment destination in Africa, it was learnt.